Many countries – particularly developing nations in Asia and South America – are struggling to keep the lid on their currencies as the falling dollar means their currencies have been rapidly appreciating thereby making their exports more expensive. In a bid to support the faltering dollar, central banks for the affected countries have been buying dollars on the open market in order to increase demand for the greenback.
Ã¢â‚¬Å“We have to be careful that our exchange rate doesnÃ¢â‚¬â„¢t appreciate too much as to deindustrialize the country,Ã¢â‚¬Â Marcos Verissimo, chief of staff at BrazilÃ¢â‚¬â„¢s state development bank known as BNDES, said yesterday at a conference in Sao Paulo. Ã¢â‚¬Å“The capital goods industry has suffered tremendously.Ã¢â‚¬Â
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